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The taxable amount of the Roth conversion is taxed as ordinary income. Provided it doesn't result in a a wash sale, up to $3,000 of capital losses in excess of capital gains can be applied against ordinary income in any given year.
Your capital losses cannot offset your Roth Conversion .
There is no way to offset a Roth Conversion unless you have a basis in your Traditional IRA, in which case you get a partial offset (see Form 8606).
Because a Roth conversion is ordinary income, and not reported as capital gains, capital losses won't offset the conversion except up to the usual $3000 limit for losses to offset ordinary income.
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